[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Fourth Quarter Highlights](index=1&type=section&id=Fourth%20Quarter%20Highlights) In the fourth quarter of 2023, Amphastar reported net revenues of **$178.1 million**, a **32%** increase year-over-year, with GAAP net income of **$36.2 million** (**$0.68** per diluted share) and adjusted non-GAAP net income of **$46.9 million** (**$0.88** per diluted share) Q4 2023 Key Financial Metrics | Metric | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Net Revenues | $178.1 million | $135.0 million | | GAAP Net Income | $36.2 million | $33.9 million | | GAAP Diluted EPS | $0.68 | $0.66 | | Adjusted non-GAAP Net Income | $46.9 million | $37.6 million | | Adjusted non-GAAP Diluted EPS | $0.88 | $0.73 | [Full-Year Highlights](index=1&type=section&id=Full-Year%20Highlights) For the full fiscal year 2023, the company achieved net revenues of **$644.4 million**, up **29%** from 2022, with GAAP net income of **$137.5 million** (**$2.60** per share) and adjusted non-GAAP net income of **$175.7 million** (**$3.32** per share) Full-Year 2023 Key Financial Metrics | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net Revenues | $644.4 million | $499.0 million | | GAAP Net Income | $137.5 million | $91.4 million | | GAAP Diluted EPS | $2.60 | $1.74 | | Adjusted non-GAAP Net Income | $175.7 million | $103.2 million | | Adjusted non-GAAP Diluted EPS | $3.32 | $1.97 | - CEO Dr. Jack Zhang emphasized strong momentum entering 2024, driven by the performance of glucagon, Primatene MIST®, and the acquisition of BAQSIMI®, which strengthens the diabetes portfolio[2](index=2&type=chunk) - A key milestone was the submission of the first Biologics License Application (BLA) for Insulin Aspart (AMP-004), highlighting continued pipeline development in diabetes management[2](index=2&type=chunk) [Financial Results](index=2&type=section&id=Financial%20Results) [Fourth Quarter 2023 Financial Results](index=2&type=section&id=Fourth%20Quarter%20Results) Fourth quarter net revenues grew **32%** YoY to **$178.1 million**, primarily driven by a **70%** increase in Glucagon sales and **$22.5 million** in revenue from the newly acquired BAQSIMI®, with gross margin improving to **54%** from **53%** despite an inventory reserve charge, and operating expenses increasing due to BAQSIMI® sales and marketing efforts and higher R&D spending [Revenues](index=2&type=section&id=Q4%20Revenues) Q4 2023 Product Revenue Breakdown (in thousands) | Product | Q4 2023 Revenue | Q4 2022 Revenue | Change % | | :--- | :--- | :--- | :--- | | Glucagon | $31,198 | $18,319 | 70% | | Epinephrine | $24,646 | $21,427 | 15% | | Primatene MIST® | $24,484 | $22,279 | 10% | | Other revenues (BAQSIMI®) | $22,456 | $0 | N/A | | Enoxaparin | $6,092 | $7,812 | (22)% | | **Total Net Revenues** | **$178,105** | **$135,023** | **32%** | - Glucagon sales growth was driven by increased unit volumes after two competitors exited the market[4](index=4&type=chunk) - BAQSIMI® contributed **$22.5 million** in 'Other revenues', recognized on a net basis under a Transition Services Agreement with Eli Lilly. Amphastar expects to recognize the full revenue amount as it takes over distribution during 2024[4](index=4&type=chunk) [Gross Profit](index=2&type=section&id=Q4%20Gross%20Profit) - Gross profit increased **35%** to **$96.1 million**, with gross margin expanding to **54%** from **53%** in Q4 2022[5](index=5&type=chunk) - Margin improvement was driven by increased sales of higher-margin products like glucagon, Primatene MIST®, and newly launched regadenoson, plus the net revenue recognition of BAQSIMI®[5](index=5&type=chunk)[6](index=6&type=chunk) - Margin expansion was partially offset by a **$3.6 million** inventory reserve charge related to the amended Supply Agreement with MannKind Corporation[6](index=6&type=chunk) [Operating Expenses](index=3&type=section&id=Q4%20Operating%20Expenses) - Selling, distribution, and marketing expenses rose **58%** to **$8.6 million**, primarily due to the expansion of sales and marketing for BAQSIMI®[7](index=7&type=chunk) - Research and development expenses increased **18%** to **$20.4 million**, mainly due to higher material and supply costs for inhalation pipeline products[7](index=7&type=chunk) - Non-operating expenses were **$12.6 million**, a significant shift from an income of **$3.4 million** in Q4 2022, primarily due to interest expense on debt related to the BAQSIMI® acquisition[7](index=7&type=chunk) [Full-Year 2023 Financial Results](index=3&type=section&id=Year-End%20Results) Full-year 2023 net revenues increased **29%** to **$644.4 million**, propelled by a **105%** surge in Glucagon sales and **$51.2 million** from BAQSIMI®, with gross margin expanding significantly to **54%** from **50%** due to a richer product mix, while operating and non-operating expenses rose due to the BAQSIMI® acquisition and related financing costs [Revenues](index=3&type=section&id=FY23%20Revenues) Full-Year 2023 Product Revenue Breakdown (in thousands) | Product | FY 2023 Revenue | FY 2022 Revenue | Change % | | :--- | :--- | :--- | :--- | | Glucagon | $113,684 | $55,322 | 105% | | Primatene MIST® | $89,321 | $84,309 | 6% | | Epinephrine | $81,650 | $74,204 | 10% | | Other revenues (BAQSIMI®) | $51,157 | $0 | N/A | | Naloxone | $19,004 | $26,269 | (28)% | | **Total Net Revenues** | **$644,395** | **$498,987** | **29%** | - Glucagon sales more than doubled due to increased unit volumes following competitor product discontinuations[8](index=8&type=chunk) - BAQSIMI® contributed **$51.2 million** in 'Other revenues' for the year, based on Lilly's reported net sales of **$86.3 million**[9](index=9&type=chunk) - Naloxone sales declined **28%** due to lower unit volumes and a lower average selling price from increased competition[9](index=9&type=chunk) [Gross Profit](index=4&type=section&id=FY23%20Gross%20Profit) - Gross profit increased **41%** to **$351.1 million**, with gross margin expanding significantly to **54%** from **50%** in 2022[10](index=10&type=chunk) - The margin increase was driven by higher sales of high-margin products (Glucagon, Primatene MIST®), new product launches (ganirelix, vasopressin, regadenoson), and the net revenue recognition of BAQSIMI®[10](index=10&type=chunk) [Operating Expenses](index=4&type=section&id=FY23%20Operating%20Expenses) - Selling, distribution, and marketing expenses increased **34%** to **$28.9 million**, driven by BAQSIMI® marketing efforts and increased advertising for Primatene MIST®[11](index=11&type=chunk) - Research and development expenses remained relatively flat, decreasing **1%** to **$73.7 million**[11](index=11&type=chunk) - Non-operating expenses were **$25.6 million**, compared to an income of **$8.5 million** in 2022, primarily due to costs associated with the credit agreement to finance the BAQSIMI® acquisition[11](index=11&type=chunk) [Business and Pipeline Update](index=5&type=section&id=Business%20and%20Pipeline%20Update) [Cash Flow and Pipeline Information](index=5&type=section&id=Cash%20Flow%20and%20Pipeline%20Information) The company generated **$183.5 million** in cash flow from operating activities for the year ended December 31, 2023, maintaining a robust development pipeline with multiple ANDAs and biosimilar candidates on file with the FDA or in development, targeting markets worth several billion dollars - Cash flow provided by operating activities for the full year 2023 was **$183.5 million**[12](index=12&type=chunk) - The company has **four** ANDAs and **one** biosimilar insulin candidate currently on file with the FDA, targeting markets of over **$3 billion** and **$4 billion**, respectively[12](index=12&type=chunk) - There are an additional **three** biosimilar products and **six** generic products in development, targeting markets of over **$10 billion** and **$8 billion**, respectively[12](index=12&type=chunk) [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Condensed Consolidated Statement of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) The statement details the company's revenues, costs, and profitability for the three and twelve months ended December 31, 2023, compared to the same periods in 2022, showing full-year net income increased to **$137.5 million** from **$91.4 million** in the prior year FY 2023 vs FY 2022 Statement of Operations (in thousands) | Line Item | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Total net revenues | $644,395 | $498,987 | | Gross profit | $351,121 | $248,860 | | Income from operations | $196,987 | $107,497 | | Net income | $137,545 | $91,386 | | Diluted EPS | $2.60 | $1.74 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of December 31, 2023, shows a significant increase in total assets to **$1.51 billion** from **$742.0 million** at year-end 2022, primarily driven by the addition of goodwill and intangible assets from the BAQSIMI® acquisition, which also led to a substantial increase in total liabilities, particularly long-term debt Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,512,912** | **$741,987** | | Cash and cash equivalents | $144,296 | $156,098 | | Goodwill and intangible assets, net | $613,295 | $37,298 | | **Total Liabilities** | **$873,491** | **$213,329** | | Long-term debt, net | $589,579 | $72,839 | | **Total Stockholders' Equity** | **$639,421** | **$528,658** | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides a detailed reconciliation of GAAP net income to adjusted non-GAAP net income, showing that for the full year 2023, GAAP net income of **$137.5 million** was adjusted for items such as intangible amortization (**$12.8 million**), share-based compensation (**$20.2 million**), and BAQSIMI® acquisition-related expenses (**$5.8 million**) to arrive at a non-GAAP net income of **$175.7 million** FY 2023 GAAP to Non-GAAP Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP net income** | **$137,545** | | Intangible amortization | $12,830 | | Share-based compensation | $20,242 | | Impairment of long-lived assets | $3,175 | | Expenses related to BAQSIMI® acquisition | $5,830 | | Debt issuance costs | $6,785 | | Income tax provision on adjustments | ($10,708) | | **Non-GAAP net income** | **$175,699** | [Supplementary Information](index=5&type=section&id=Supplementary%20Information) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures, such as Adjusted non-GAAP net income and Adjusted non-GAAP diluted EPS, to supplement its GAAP financial statements, excluding items like amortization, share-based compensation, impairment charges, and acquisition-related expenses to provide investors with a clearer view of ongoing operational performance - The company discloses non-GAAP measures because management uses them internally for forecasting, budgeting, and measuring operating performance[14](index=14&type=chunk) - Adjustments typically exclude amortization expense, share-based compensation, impairment charges, acquisition expenses, debt issuance costs, and legal settlements[14](index=14&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding future financial performance, business trends, product development, and the prospective benefits of the BAQSIMI® acquisition, which are based on current expectations and subject to risks and uncertainties that could cause actual results to differ materially - Forward-looking statements cover expectations on future growth, sales, product development, FDA filings, and the impact of the BAQSIMI® acquisition[15](index=15&type=chunk)[16](index=16&type=chunk) - Investors are cautioned not to place undue reliance on these statements as they involve known and unknown risks, and the company undertakes no obligation to update them[16](index=16&type=chunk)

Amphastar Pharmaceuticals (AMPH) closed the most recent trading day at $51.91, moving +1.29% from the previous trading session. This change lagged the S&P 500's 2.11% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 2.96%.Shares of the specialty pharmaceutical company witnessed a loss of 7.19% over the previous month, trailing the performance of the Medical sector with its gain of 3.98% and the S&P 500's gain of 3.08%.Market participants will be closely following t ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Amphastar Pharmaceuticals (AMPH) .Amphastar currently has an average broke ...

Drug stock Amphastar Pharmaceuticals (AMPH) has formed a cup base and settled down after a steep sell-off in January. Now, as an IBD Sector Leader, Amphastar stock is about 18% off its all-time high.X Amphastar develops injectable, inhalation and intranasal medical and insulin products. Its products are used mainly in hospitals and urgent care clinics. It also makes over-the-counter asthma inhaler Primatene Mist, along with emergency glucagon treatment kits for low blood sugar.Amphastar ranks No. 1 among 75 ...

Amphastar Pharmaceuticals (AMPH) closed the most recent trading day at $55.61, moving +1.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.57%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 1.25%.Prior to today's trading, shares of the specialty pharmaceutical company had gained 1.05% over the past month. This has lagged the Medical sector's gain of 2.05% and the S&P 500's gain of 5.07% in that time.Investors will be eagerly watching for the per ...

The biotech sector is one of my favorite sectors since it is not only constantly growing and with companies that are always doing wonderful research, products, and solutions, but it is also a sector that is constantly innovating and contributing to the health of the human being. If you want to participate as an investor in this sector and take advantage of companies that have great growth opportunities, here are three biotech stocks with potential that you can consider adding to your portfolio.Nkarta (NKTX) ...

Amphastar Pharmaceuticals (AMPH) closed at $54.94 in the latest trading session, marking a -0.81% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.06%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq lost 0.76%.Shares of the specialty pharmaceutical company witnessed a loss of 10.45% over the previous month, trailing the performance of the Medical sector with its gain of 1.65% and the S&P 500's gain of 3.36%.Analysts and investors alike will be keepi ...

The U.S. economy showed robustness in 2023 while expanding at a healthy pace in the final three months and squashing recession fearmongering. The domestic economy displayed astounding resilience in the face of the Federal Reserve’s monetary tightening campaign to tame relentless price pressures. It continued to thrive, banking on the uptick in consumer outlays and strength in the labor market.The U.S. economy accelerated at an annualized rate of 3.3% in the final quarter of 2023, more than economists’ forec ...

Toward the end of 2023, the economy started showing signs of stabilization and easing inflationary pressure as the Fed finally decided to keep interest rates unchanged. This is likely to benefit generic drugmakers like Amphastar Pharmaceuticals (AMPH) , Teva Pharmaceutical (TEVA) and Dr. Reddy’s Laboratories (RDY) , who can potentially benefit from declining costs in the long run.These drugmakers are also focusing on new product launches or existing products with high gross margins to support their top and ...

Investors seeking healthy returns should add stocks with favorable liquidity to their portfolios.Liquidity measures a company’s capability to meet its short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.Investors should be alert before considering such stocks. While a high liquidity level may imply that the company is clearing its dues faster than its peers, it may also suggest that it cannot utilize assets competentl ...